Ashland Inc. to sell its distribution business to TPG Capital
Chemical supplier Ashland Inc. has signed a definitive agreement to sell its global distribution business, k...
November 7, 2010 by Canadian Plastics
Chemical supplier Ashland Inc. has signed a definitive agreement to sell its global distribution business, known for many years as Ashland Distribution, to investment firm TPG Capital for US$930 million.
The transaction is expected to close prior to the end of the March quarter, pending regulatory approval.
“This divestiture reflects Ashland’s strategic direction and completes a major step in our multi-year transformation into a high-performing specialty chemicals company,” said Ashland chairman and CEO James J. O’Brien. “Our overall goal remains to return maximum long-term value to our shareholders.”
The Ashland Distribution business has been a part of Ashland for more than 40 years. With annual revenue of approximately US$3.4 billion, the business has approximately 2,000 employees across North America and Europe, and entered the China plastics market in 2009.
“For TPG, the purchase of Ashland Distribution represents an opportunity to acquire an industry-leading distributor with an established network of suppliers,” said Ken Burns, a partner at TPG Capital. “I believe the outlook for the distribution business and its employees will be much stronger as part of an organization targeting growth within the distribution marketplace.”